Commentaries

17 September 2018

Emmanuel Hauptmann

RAM Active Investments RAM (Lux) Systematic Funds - Emerging Markets Core Equities Maxime Botti Partner & Senior Systematic Equity Fund Manage

 

The RAM (Lux) Systematic Funds – Emerging Markets Core Equities Fund ended the month down -2.49%* (Ip USD Class – net of fees) outperforming the MSCI Emerging Markets TRN which returned -2.70%. The situation in Turkey had a significant detrimental impact on performance, from both an allocation and currency perspective, but not from a selection effect perspective (where we outperformed the market). At the country level contributors to August’s outperformance were China, Taiwan and Brazil. Our significant underweight to and prudent stock selection in China (13.6% vs 26.9%) was a big positive for the Fund, with China suffering amid the looming trade war and a strengthening US dollar, our models were able to still identify the right stocks over the month. Positive stock picking in both Brazil and Taiwan also contributed strongly over the month, with the former country also benefitting from a helpful positive currency effect. From a sector perspective, Industrials and Utilities weighed despite a largely positive selection effect owing to a negatively impacting currency effect. Stock selection within Consumer Discretionary, Financials and IT names were hugely beneficial for our Fund. Our engines made several allocation changes over the period (aside from slashing our Turkey exposure from 5.4% to 1.9%), we increased our exposure to Taiwan, India and China. These moves came at the expense of reductions to Russia and South Africa. Changes at the sector level were more muted; with increases in Consumer Stapes and Telcos at the expense of Health Care and Energy.

*Sources : RAM Active Investments